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Telefonica SA (NYSE:TEF) Given Average Rating of "Strong Sell" by Analysts

Telefonica logo with Utilities background

Key Points

  • Telefonica SA has received an average rating of "Strong Sell" from five analysts, with a target price of $4.20.
  • Institutional investors have made significant moves, with Goldman Sachs increasing its stake by 20.6% and other firms also boosting their positions in recent months.
  • The company's latest earnings report showed an EPS of $0.08 and revenue of $10.28 billion, exceeding analysts' expectations significantly.
  • Five stocks to consider instead of Telefonica.

Telefonica SA (NYSE:TEF - Get Free Report) has been given an average recommendation of "Strong Sell" by the five ratings firms that are covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a sell rating and two have given a hold rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $4.20.

Several research firms recently issued reports on TEF. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Telefonica in a research note on Wednesday, October 8th. Berenberg Bank upgraded Telefonica to a "hold" rating in a research report on Thursday, June 26th. Finally, BNP Paribas Exane initiated coverage on Telefonica in a research note on Tuesday. They set an "underperform" rating and a $4.20 price objective on the stock.

Read Our Latest Report on TEF

Institutional Investors Weigh In On Telefonica

Several large investors have recently added to or reduced their stakes in TEF. Goldman Sachs Group Inc. boosted its position in shares of Telefonica by 20.6% during the first quarter. Goldman Sachs Group Inc. now owns 6,243,236 shares of the utilities provider's stock worth $29,093,000 after buying an additional 1,065,861 shares during the period. Carrera Capital Advisors acquired a new stake in Telefonica during the second quarter valued at approximately $5,440,000. Mainstay Capital Management LLC ADV lifted its position in shares of Telefonica by 99.5% during the 2nd quarter. Mainstay Capital Management LLC ADV now owns 780,285 shares of the utilities provider's stock valued at $4,081,000 after acquiring an additional 389,242 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Telefonica by 2,896.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 302,281 shares of the utilities provider's stock valued at $1,581,000 after purchasing an additional 292,193 shares during the period. Finally, American Century Companies Inc. increased its position in shares of Telefonica by 17.8% in the second quarter. American Century Companies Inc. now owns 1,752,600 shares of the utilities provider's stock worth $9,166,000 after acquiring an additional 265,090 shares in the last quarter. 1.14% of the stock is owned by institutional investors and hedge funds.

Telefonica Stock Up 1.8%

Shares of TEF opened at $5.30 on Tuesday. The company's fifty day moving average is $5.27 and its two-hundred day moving average is $5.16. Telefonica has a fifty-two week low of $3.89 and a fifty-two week high of $5.72. The company has a quick ratio of 0.81, a current ratio of 0.85 and a debt-to-equity ratio of 1.47. The firm has a market cap of $30.02 billion, a PE ratio of -11.03, a price-to-earnings-growth ratio of 0.59 and a beta of 0.49.

Telefonica (NYSE:TEF - Get Free Report) last posted its earnings results on Wednesday, July 30th. The utilities provider reported $0.08 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.08. The business had revenue of $10.28 billion during the quarter, compared to analyst estimates of $9.03 billion. Telefonica had a positive return on equity of 8.57% and a negative net margin of 5.88%. Analysts forecast that Telefonica will post 0.3 earnings per share for the current year.

About Telefonica

(Get Free Report)

Telefónica, SA, together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services.

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Analyst Recommendations for Telefonica (NYSE:TEF)

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